Part 7: Settlement of proposals without a Valuation Tribunal decision - (WALES)
The Valuation Office Agency's (VOA) technical manual for the rating of business (non-domestic) property.
This section is relevant to Wales only, a corresponding section for England is available from the main index.
The Non-Domestic Rating (Alteration of Lists and Appeals) (Wales) Regulations 2005
(SI 2005/758 (W.63))
(unless otherwise specified)
3.1 Giving effect to a proposal
The authority to well-found a proposal is set out in Reg 10:
Reg 10 “Proposals agreed by valuation officer”
“Where the valuation officer is of the opinion that a proposal is well-founded, he shall as soon as reasonably practicable alter the list accordingly.”
Most well founded proposals will be to give effect to matters that have previously been established or to delete an entry from a Rating List but it is recognized that a proposal to include a hereditament in the List (or for a split or merger) may also be treated as well founded.
These cases are likely to be rare in view of the need to propose correct entries in respect of the description, address, rateable value, effective date and other matters required by section 42 of LGFA 1988 – ‘the Act’- and the list must show if the property is a composite hereditament or partially exempt.
There is nothing in the Appeal regulations to prevent the well founding of a proposal after it has been transmitted to the Valuation Tribunal as an appeal.
The Rating List must be amended as soon as reasonably practicable in accordance with the proposal and the well-founded notices must be served in accordance with Reg.17 (SI 2005/ 758) on all the necessary parties, within four weeks of altering the list.
4.1 General
Reg 11 enables the withdrawal of a proposal before transmission of an appeal and Reg 24(1) enables the withdrawal of an appeal before the commencement of a VT hearing.
4.2 Withdrawal forms
The Regulations do not prescribe any form for withdrawals. A letter or written notice from the maker of a proposal clearly stating an intention to withdraw unconditionally should be accepted as valid. (If the case has reached appeal stage, see para 4).
Whenever possible form VO 7300 should be used for the withdrawal of a proposal. If the withdrawal is in the form of a letter, it should be attached to a form VO 7300 and the space for “The proposer” to be marked “see letter attached”.
4.3. Withdrawal (prior to transmission to VT as an appeal)
4.3 (a) Parties to a withdrawal
Whenever it is intended that a proposal shall be withdrawn before it is transmitted to the VT as an appeal, the person who made the proposal may withdraw it by serving written notice on the VO (Regulation 11(1)).
A proposal can be withdrawn at any time before the appeal stage by obtaining the signature of the person who made it.
However, if the proposal was made by a person in the capacity of ratepayer and that person is no longer the ratepayer for the hereditament at the date of withdrawal, see para 4.3(b) below or, if there is an ‘interested person’ who has served notice on the VO (Regulation 11(3)), see para 4.3(c) below
Where the VO has received a withdrawal of a proposal, prior to its referral as an appeal to the VT, from an occupier, who remains in occupation, the caseworker should arrange to have VO 7300 fully completed and signed by or for the VO. and processed in accordance with the NDR Procedure manual.
4.3 (b) Change of ratepayer
Where a proposal made by the ratepayer of the hereditament is to be withdrawn before the appeal stage, and that person is no longer the ratepayer, it cannot be withdrawn unless the ratepayer at the date of withdrawal has also given consent in writing (Regulation 11(2)).
If the present ratepayer declines to give written consent to the withdrawal of a proposal made by a previous ratepayer, then the withdrawal cannot take effect. In this situation the proposal will have to remain outstanding and be transmitted to the VT as an appeal.
If the proposer was a tenant and the hereditament is unoccupied at the date of the withdrawal, the signature of the owner will be required. However if the original proposal was made by an owner/occupier and the hereditament is unoccupied at the date of the withdrawal provided the appeal stage has not been reached the signature of the proposer is sufficient if there is no change of ownership.
4.3 (c) Interested persons
Where the VO has received a withdrawal of a proposal, prior to its referral as an appeal to the VT, but an interested person has served notice to take part in the proceedings in relation to the proposal, under Regulation 11(3), the VO must serve notice of the withdrawal on that interested person.
Regulation 11(4) confers a right on that interested person, to serve written notice on the VO and may take over the original proposal. Such a notice by the interested person has to be served on the VO within six weeks beginning on the day on which the VO served the Regulation 11(3) notice of the withdrawal of the proposal on the interested person.
No time limit is specified for the service by the VO of a withdrawal of proposal notice under Regulation 11(3).
However, the VO should serve the notice on the interested person immediately after receiving the withdrawal of the proposal using letter VO 7057 and form VO 7058 (RM Appendices 2:6:3 & 4), enclosing a copy of the original proposal.
Where VO 7058 Notice is returned to the VO by an interested person, within the time limit of six weeks, the proposal is still treated as withdrawn. However the person who served the VO 7058 on the VO becomes a new appellant if that person would at the date of the proposal have been competent to make it.
The VO 7058 Notice should be attached to a blank proposal form and, as per regulation 11(4)(a), registered in the RSA as a new proposal with a case remark to indicate that the proposal is made following the notice by an interested person under Regulation 11(4) pursuant to the original (now withdrawn) proposal.
It should be treated as if it were made in the same terms as the original (now withdrawn) proposal but, for administrative purposes, made on the day on which the Notice was served on the VO.
Under regulation 11(4)(b) any resulting alteration shall have effect from the day which would have been applicable had there been no withdrawal under this regulation.
In the event that this proposal becomes an appeal, a copy of the VO 7058, together with a copy of the original (but now withdrawn) proposal should be forwarded to the VT.
Where VO 7058 is returned to the VO after the time limit of six weeks the interested person should be advised that it is out of time and no further action taken on the matter.
If the VO 7058 is returned within the time period but the VO considers that the interested person would not have been competent to make the original (now withdrawn) proposal, then the Regulation 8 invalidity procedures should be applied (see RM Vol 2 Sec 2 para. 6).
4.4 Withdrawal of proposals (after transmission to VT as an appeal)
4.4(a) Notification to Tribunal
Regulation 24 provides that the written consent to the withdrawal of an appeal by all parties must be given to the VO. When all the necessary consents have been received the VO should notify the Clerk of the Tribunal accordingly.
When an appeal is withdrawn between the last electronic download to the Tribunal and the commencement of the hearing, it will be necessary for offices to agree locally the method of notification to the Clerk. The Regulations do not require written notification nor evidence of the withdrawal but a standard letter VO 7308 (RM Appendix 2:6:5) may be used if required. If, however, the Clerk of a particular VT requests that copies of the signed VO 7300 withdrawal form be supplied, VOs may comply accordingly.
Once all the parties to the appeal have signed the form VO 7300 it should be signed and dated by or for the VO and retained on the case file. The case should then be cleared as a withdrawal case on RSA and progressed to completion.
4.4 (b) Parties to a Withdrawal (after transmission to VT as an appeal)
Before a proposal, which has reached the appeal stage, can be withdrawn under Regulation 24(1)(b), the written agreement (where appropriate) of the following persons is required:-
a) the proposer;
b) subject to Reg 12(3), the occupier, at the date of the proposal, of any hereditament to which it relates;
c) the ratepayer, at the date of the withdrawal, in relation to any hereditament to which it relates;Reg 11(2)
d) subject to Reg 12 (3), any interested person or, for proposals made after 1 April 1993, relevant authority who –
(i) would at the date of the proposal have been competent to make the proposal, and
(ii) has within two months beginning on the day on which the proposal was served on the valuation officer, served on that valuation officer notice in writing indicating a wish to be party to proceedings in respect of the proposal;
a. for all proposals made before 1 April 1993 the Billing Authority if, at the date of the proposal, that authority would have been competent to make it;
b. any other person who has been a ratepayer since the proposal was made and who has notified the Valuation Officer in writing that they wish to be a party to the appeal. Where:-
(i) the occupier of the hereditament at the date of the proposal is no longer in occupation of any part of it, at the date on which all the other persons mentioned above have agreed to the withdrawal, and the Valuation Officer has taken all reasonable steps to ascertain that person’s whereabouts, but they have not been ascertained, or
(ii) any interested person who has given notice as mentioned in Regulation 12(2)(e) cannot be contacted at the address supplied to the Valuation Officer (whether in the notice or otherwise),
the agreement of that person is not required.
4.4 (c) Notifying Interested Persons
Where an appeal to the VT is withdrawn under Regulation 24(1), it is unnecessary for the VO to serve a withdrawal of proposal notice in accordance with Regulation 11(3) because any person who has exercised the right to be a party to the proceedings in respect of the proposal will already have consented to the withdrawal as required under Regulation 24(2).
4.4 (d) Notifying the Billing Authority
There is no requirement to notify the Billing Authority that a proposal has been withdrawn. Billing Authorities will be advised of the position via the normal electronic transmission of update schedules in accordance with NDR Procedure Manual.
Settlements of proposals or appeals by agreement are dealt with under Regulations 12 and 24(4).
5.1 Agreement forms
Various forms of agreement, VO 7302 - VO 7307 (RM Appendices 2:6:6-11) have been introduced for use when agreements are made to alter the Rating List (RM Appendix 2:6:2 gives a complete list of all Forms of Agreement and their purpose). Where these are generated electronically care must be taken that the RSA or the Defence Support Package data is fully completed to ensure the correct documents are produced.
5.2 Standard covering letter for Agreement Form
A standard letter, VO 7301, reproduced as RM Appendix 2:6:12, should be used to forward two copies of the agreement form to individual parties for their signature. A third copy of the form, showing the signature(s) obtained to date (if any), should be enclosed for retention by the party concerned.
Agreement forms should be signed by all the requisite parties as listed below. Before agreement forms, signed by at least one party, are forwarded to another party for signature, a copy of the original should be taken and kept on the case file. This procedure should be followed each time a signature is added to the forms and the previous photocopy destroyed. In this way the signatures already obtained will be readily available should a partly-signed form be lost in transit or not returned.
5.3 Parties to an Agreement
The persons whose written agreement is required are set out in Regulation 12(2) as follows:
a) the valuation officer;
b) the proposer;
c) subject to Reg 12(3), the occupier, at the date of the proposal, of any hereditament to which it relates;
d) the ratepayer, at the date of the agreement, in relation to any hereditament to which it relates;
e) subject to Reg 12 (3), any interested person or, for proposals made after 1 April 1993, relevant authority who -
(i) would at the date of the proposal have been competent to make the proposal, and
(ii) has within two months beginning on the day on which the proposal was served on the valuation officer, served on that valuation officer notice in writing indicating a wish to be party to proceedings in respect of the proposal;
a) for all proposals made before 1 April 1993 the Billing Authority if, at the date of the proposal, that authority would have been competent to make it (see para 5.5 below);
b) additionally, any other person who has been a ratepayer since the proposal was made and who has notified the Valuation Officer in writing that they wish to be a party to the appeal.
When the appropriate agreement form has been signed by all requisite persons mentioned above and returned to the Local Office, the caseworker should ensure that the agreement form is signed, and dated, by (or for) the VO.
5.4 Missing signatories
By virtue of Reg 12 (3):
Where:-
a) the occupier of the hereditament at the date of the proposal is no longer in occupation of any part of it, at the date on which all the other persons mentioned in Regulation 12(2) have agreed and the Valuation Officer has taken all reasonable steps to ascertain that person’s whereabouts, but they have not been ascertained, or
b) any interested person who has given notice as mentioned in Regulation 12 (2)(e) cannot be contacted at the address supplied to the Valuation Officer (whether in the notice or otherwise),
the agreement of that person is not required. If any of the other required signatories are unobtainable, the proposal or appeal will have to be determined by the VT.
5.5 Agreement of Billing Authority
5.5 (a) Proposals made before 1 April 1993 – 1990 Lists
References to regulations in this sub-paragraph are to the Non-domestic rating (Alteration of Lists and Appeals) Regulations 1993 SI 1993 No.291) as amended unless otherwise specified.
Because of the transitional provisions (Reg 54) of the Non-domestic rating (Alteration of Lists and Appeals) Regulations 1993 (SI) 1993 No. 291) the position of the BA remains as it was for the first 3 years under SI 1990 No. 582.
Agreement forms VO 7303 and 7304 must always be signed by or on behalf of the Billing Authority. This is because all BAs are competent to make proposals for the deletion or insertion of entries as set out in Regulation 4(1) of the 1993 Regulations. This also applies to any agreement, on whichever form is appropriate, resulting from a proposal made on the grounds of a material change of circumstances or a decision by the relevant VT, the LT or a superior court. The BA in such cases would have been competent to make the proposal under Regulation 4(4).
Agreements in respect of proposals against the compiled List (Regulation 4(2)), for splits, mergers or reconstitutions (Regulation 4(3)), by new ratepayers (Regulation 4(5)) and in respect of VO alterations (Regulation 4(9)) do not require the signature of the BA.
A requirement for the signature of the BA, if appropriate, will have been decided on initial registration of the proposal and the BA shown as a party to the proposal on the “APP Parties” report.
5.5 (b) Proposals made after 1 April 1993
Since 1 April 1993, BAs do not automatically become a party to a proposal simply because they were competent themselves to make a proposal on the same grounds. An Authority must now also serve written notice on the VO within 2 months of the proposal being made stating that they wish to be a party to the proceedings in respect of that proposal.
Only if the BA serves notice and would have been competent to make the proposal can the Authority become involved in the proceedings for that proposal.
This provision should not be confused with the requirement under Regulation 9(1) of the 2005 Regulations for BAs to serve notice requiring copies of proposals see RM Vol 2 Sec. 2 para. 8.
5.6. Time limits for giving effect to agreement
Where the parties to a proposal reach agreement in writing on an alteration to the list before the end of the period of two months from the day the proposal is served on the VO, the List should not be altered during that period. This is to ensure that the rights of interested persons, who may during that period under Reg 12(2)(e) serve notice on the VO of their wish to become a party to the proceedings, are preserved (see Reg 12(4)).
If, between the date of the agreement and the end of the two months’ period, an interested person gives the VO notice of a wish to be a party to the proceedings, that person’s written agreement will be necessary before effect can be given to the alteration to the list already agreed with the other parties. If such agreement is not forthcoming the proposal will have to be settled by a VT decision.
If no person has become a party to the proceedings by the end of the two months’ period, the VO should alter the list to reflect the agreement within 2 weeks in accordance with Reg 12(1)(a) and 12(4).
5.7 Notification to Tribunal (after transmission to VT as an appeal)
Although there is a statutory requirement, under Regulation 24, for the Clerk of the VT to be notified that an appeal has been settled, there is no requirement for the VO to supply actual copies of agreement forms. If, however, the Clerk of a particular VT requests that such copies be supplied, VOs may comply accordingly.
Where an appeal has been constituted by means of electronic media transmission to the VT, notification of settlement will be automatically transmitted on the next weekly download.
Where an appeal has been constituted by means of manual transmission to the VT, the settlement of such cases will always be reported manually. Form VO 7308 (RM Appendix 2:6:5) should be used for this purpose.
Caseworkers must complete all the necessary procedures in accordance with NDR Procedure Manual and ensure matters including the issue of appropriate Transitional certificates and valuation scale amendments or creation have been carried out as necessary.
Quality Assurance checks must be carried out in accordance with NDR Procedures Manual.